Chart of the Week: Opportunistic Fundraising – H1 2014

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Data from PERE Research & Analytics has revealed that a total of $56.7 billion had been raised for private real estate funds for H1 2014. Within that total, opportunistic fundraising gathered an aggregate total of $15.9 billion across all regions. Despite accounting for approximately 28 percent of total capital for the half-year point, it was actually debt fundraising that led all strategies, raising a total of $18.5 billion, or around 33 percent. This represents a turning point for opportunity funds because the strategy typically outperforms all other strategies, with value-added funds and debt funds coming in at second and third place respectively.

Regionally, Europe led the pace for opportunity fundraising for H1 2014, raising a total of $8.8 billion. Additionally, it was Europe that raised the most capital for the half, with an aggregate fundraising size of $24.7 billion, or about 44 percent. Opportunity funds for the region surpassed the prior half, where a total of $3.7 billion had been raised in H2 2013, a growth of 137 percent. The largest fund closing for the region was the Blackstone Real Estate Partners Europe IV, managed by The Blackstone Group, which raised €5 billion in March. North America came in second for opportunity fundraising, with a total capitalization of $4.2 billion for the half. Unlike Europe, this represents a dip for the region where in H2 2013 a total of $7.4 billion had been raised, a decrease of 43 percent. The largest funds closed for the region was the GI Partners Fund IV, managed by GI Partners, which raised $2 billion and the Kildare European Partners I, managed by Kildare Partners, which raised $2 billion in May.

Notable funds in market for the region include the Starwood Distressed Opportunity Fund X, managed by Starwood Capital Group, which is targeting $5 billion and the Blackstone Real Estate Partners Asia, managed by The Blackstone Group, which is targeting $4 billion.